Luxembourg Rent: Europe’s Most Expensive Capital

Rents in Europe continue to rise. In many cities, the square meter price is now at a level that would be enough for an entire house in other regions. A new analysis of the Deloitte Property Index 2025 illuminates the most expensive rental markets in Europe – with an unexpected leader.

Luxembourg City leads the list with an average square meter price of 43.40 euros. The capital of the Grand Duchy itself exceeds high-price metropolises such as Paris (32.00 euros) and Dublin (31.70 euros). The low city size is in a strong contrast to the enormous rental load.

The city’s real estate market is primarily characterized by high demand and a limited offer. Affordable living space is becoming increasingly scarce, which in particular presents young people and families with challenges.

There is also a similar trend in other European cities such as Barcelona (29.90 euros), Oslo (27.30 euros) or Amsterdam (26.30 euros). Even London, long -term epitome for high rental prices, now only ranked ninth with 23.80 euros.

In a European comparison, rents in Austria are considered moderate despite high real estate prices. The square meter here is less than 12.00 euros – not least because of the state rental price regulations.

However, a significant development can also be seen in Austria: rents have increased by over four percent in the year. Particularly strong price jumps were reported in Southeast Europe, such as in Poland, Albania or Bosnia and Herzegovina, where double -digit climbs were partly recorded.